The Dangote Petroleum Refinery has resumed truck-loading of Premium Motor Spirit (PMS) to oil marketers following weeks of suspension linked to adjustments in crude supply arrangements and currency-related challenges.
The refinery had earlier halted truck loading due to the expiry of the naira-for-crude policy and the volatility in foreign exchange and crude oil markets. While marine-based loading continued under dollar-denominated transactions, domestic marketers were required to adjust payments before access to truck supply could be restored.
Following the resolution of these commercial terms, marketers, including MRS Oil and Gas, have recommenced loading operations at the refinery, with the ex-depot price for PMS now at N880 per litre.
The resumption, however, has triggered fresh increases in pump prices across major cities. Market updates show that depot prices have moved to N900 per litre, while retail stations are adjusting pump prices upwards, with some locations recording prices as high as N960 per litre.
In Lagos and surrounding states, pump prices now average between N930 and N940 per litre, while the South-South and South-East regions are witnessing prices close to N960 per litre. The northern axis is expected to post even higher retail prices due to additional transportation costs.
Industry operators attribute the new price adjustments to the interplay of rising crude oil prices, FX pressures, and logistic costs. Sources confirm that marketers without updated payment structures are yet to resume lifting PMS from the refinery.
“The resumption of truck loading is only available to marketers who have met the new financial conditions,” a senior industry source confirmed.
Since the suspension of the naira-for-crude policy, marketers have been forced to rely fully on dollar-denominated transactions, exposing PMS pricing to FX market volatility. The refinery, which initially supported the market through the naira-settled crude supply, now operates strictly on commercial terms aligned with international market pricing.
The latest development adds to the growing list of challenges confronting the downstream petroleum sector. Analysts have warned that continued FX pressure, combined with global crude market trends, could keep domestic pump prices elevated in the near term.
While the resumption of supply offers short-term relief in terms of product availability, concerns persist about affordability, especially for businesses and households already contending with inflationary pressures.
Discussions within the industry are ongoing regarding the possibility of restoring or modifying the naira-for-crude arrangement to reduce FX-related exposure and stabilize pricing for domestic supply.
